“We have seven different types of products, which can cater to variety of customers unlike our competitors, who may have a maximum of 2 products”.
Sujit Sanyal, Sr. VP (Business Operations Group), Ricoh India Limited, is a MBA from Benaras Hindu University (1977 batch). He has over three decades of experience in Sales & Marketing. His current job profile includes heading the Marketing, Sales and After Sales Services functions of Ricoh India Limited. He has keen interest in teaching MBA students and in Total Quality Management.Ricoh Company Ltd. Japan, the parent company of Ricoh India Limited, is a leading global player in the area of (a) Imaging solutions like Digital Plain Paper Copiers, Colour Plain Paper Copiers, Colour & Mono Lazer Printers, Fax machines, Thermal paper etc., (b) Networking Input/Output systems like Multifunction Printers, Services and Software, Scanners etc, (c) Networking System Solutions like PC’s, Servers, Networking equipment, Networking software etc.
Replying to Nancy Jacob of IIFL, Sujit Sanyal says, “We have seven different types of products, which can cater to variety of customers unlike our competitors, who may have a maximum of 2 products”.
What is your market size in the laser printers space in India?
Demand for laser printers is increasing by almost 12-15% every year. About 1.2mn of our laser printers are sold in India. Although, we are not an active participant in the field of laser printers, as the company just acquires one or two products in this category and not the entire range of laser printers. An A4 printer covers 1.2mn units, Office Copier Printer, A3 has 90,000 units and then there are Super Machines which cover nearly 200 units.
What is your company’s size in the laser printer market?
We have a presence in the office copier segment where last year we sold about 15,000 units and this year we have a target of 19,000 units. We are looking to grow 20-21% this year. For A4 laser, this year the company has a target of 19,000 units and 40 units for the Super Machines. In revenue terms, last year, the company was a little less than Rs. 3 bn. This year the target is Rs. 4 bn
Where does your after sales revenue come from?
That totally depends on the customers; the number of times they make use of the products in terms of number of prints per day etc. The more toner, developer, spares consumed by the customer, the more we benefit. Out of the Rs. 3bn, or the next year’s target of Rs. 4bn, 45% of the company's revenue comes from after sales services, a very important part of the company's revenue. We are now aiming for after sales services to contribute to 50% of the company’s growth.
Which are the key technologies that are ruling the printing industry today?
It is laser technology, irrelevant of any machines whether it is an office printer, A4 or A3.
Which are your strong markets in India?
In south India, all the five states are doing very well. Maharashtra is losing its leadership which once had a very strong position. Gujarat is also doing well.
What are your future plans for your Indian customers?
Indian customers are the most demanding customers. Indians use every asset much longer than its life and we design our products keeping in mind our customers from India.
Our future plans depend entirely on the needs and requirements of our customers. Since projectors are the prime and growing need in the coming years, we will launch projectors soon. Another product which is in the pipeline is the portable video conferencing which will be launched in the next 2-3 months. It will be something which is smaller than laptops and very flexible to use.
What kind of growth has the Indian digital printing space seen over the years, especially in the commercial printing sectors?
Commercial printing has been growing rapidly by almost 35-40% every year. Office printing is growing by about 8-12% each year.
How is India in terms of new innovation, developments and technology?
The rate of growth in technology is rapid and so is the Indian customer's knowledge of the latest technology available in the market, not just in the neighbouring countries, but also worldwide. India, in terms of innovations and development, is almost in line with other developed countries. The demands of the Indian consumers are ever changing and we always strive to meet their needs. Indian customers are much more tech savvy when compared with some of the other countries.
What is your market share in each category?
In the products where we have a presence now, our overall market share is 20-30%.
From our three categories of products, in A4 laser printers we have no market share. In A3 office equipment, the company has a market share of 20-23% and in production printing it is about 33%.
Has the crisis in US and Europe affected your business in any way?
Companies which are dependent on the US and Europe will be badly affected, which was observed in 2008. From the entire Indian economy, 15% of our businesses are export depended while 85% GDP is earned from our local consumption; that 15% may have a problem. The IT industry would be hugely affected as the biggest customer is the USA. We would not be much affected.
Do you have any recruitment plans?
We have strength of 640 employees as on March 31, 2011 At present, we are 900 employees in all and have already started a mere hiring programme. I can clearly see the growth in IT and as we take up more efforts, we will cross the 1000 employee mark March, 2012. A 50% growth in headcount will take place by March 31, 2012. When we start new operations, we will naturally hire more people. IT will be one area where we will be hiring close to a 100 people mostly by July next year.
What are your capex plans?
We have already invested in the demo centres, which are more like R&D centres. We have spent close to Rs. 40-50mn. In terms of IT and Acquisitions, we acquired a small IT company 2-3 months ago and roughly Rs. 1 bn has been invested this fiscal.
Similar capex growth is likely next year. Two more demo centres in Mumbai and Chennai are planned.
What is your USP?
We deal in a very large number of products and strive to be a single point of contact for all the customers in office equipment, not in furniture. In IT and equipment, we wish to be a single point of contact. We have seven different types of products, which can cater to variety of customers unlike our competitors, who may have a maximum of 2 products.
How do you consider the pricing of your products for Indian customers?
Indian customers always look for the lowest prices. It is a battle most of the time if the volumes are very large. If prices are low and the market is also not very large, it is very difficult to lower the prices. There is a high volume market and there are about 15-20% customers who are willing to pay high prices for the best products. So, we strike a balance between this 15-20% share and the customers who do not wish to spend a lot. It works like a volume business and a value business. Volume business is very important for market share while value business is what we are doing right and at what we strive to excel.
What are the challenges you face?
For us, the challenge is how quickly we can fulfill the needs of the customers. It is also a challenge for us to develop products specifically for Indian customers as per their requirements. Our team from Japan constantly visits India and talks to our Indian customers and understands their requirement. They find out ways and means to improve the products and services, keeping in mind the perspective of our customers.
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